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    Long term government bonds vs corporate stock; bond markets

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    7. Compared to interest rates on long-term U.S. government bonds, interest rates on ____________ fluctuate more and are lower on average.
    high quality corporate bonds
    three-month Treasury bills
    low quality corporate bonds
    home mortgages

    8. Statement (1) A bond is a debt security that promises to make payments periodically for a specified period of time. Statement (2) A stock is a security that is a claim on the earnings and assets of a corporation.
    Statement (1) is true; Statement (2) is false
    Statement (1) is false; Statement (2) is true
    Statement (1) and Statement (2) are both true
    Statement (1) and Statement (2) are both false

    9. Statement (1) Debt markets are often referred to generically as the bond market. Statement (2) Bonds are routinely traded in capital markets.
    Statement (1) is true; Statement (2) is false
    Statement (1) is false; Statement (2) is true
    Statement (1) and (2) are both true
    Statement (1) and (2) are both false

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    https://brainmass.com/business/the-role-of-government-and-regulation/long-term-government-bonds-corporate-stock-bond-markets-377257

    Solution Preview

    7. Compared to interest rates on long-term U.S. government bonds, interest rates on
    ____________ fluctuate more and are lower on average.

    Answer: Interest rates on treasury bills are lower than government bonds. All ...

    Solution Summary

    The following posting discusses three questions based on interest rate on long-term bonds, security of bond and stocks and discussed the problem on debt market, bond market and capital market.

    $2.19

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